This document discusses the foundations of international business. It distinguishes between domestic and international business and explains why international business is important. It notes that international trade has a long history and is not a recent phenomenon. Key topics covered include the components of the international business environment, basic international business activities like imports and exports, and trade barriers between countries.

1. International Business Chapter 1 We live in a Global Economy Objectives: Distinguish between domestic and International business. Discuss the reasons why international Business is important Understand that international trade is not just a recent event [P.8-25]

2. The Foundation of International Business International Business Chapter 1-1 Objectives: Distinguish between domestic and International business. Discuss the reasons why international Business is important Understand that international trade is not just a recent event Global Domestic International Key Words

3. Coffee we drink Toys for our kids The Oil to make gasoline The cars we drive Cotton for clothing [we buy] International Business International Business Concept Chapter 1-1

4. Computers Soy beans Cars Corn Civilian aircrafts [we sell] International Business International Business Concept Chapter 1-1

5. International Business Concept The exchange of products and services among countries. Transactions that are carried out across national borders to satisfy the objectives of individuals and organizations. International Business Chapter 1-1

6. International Business Concept International Business Anything can be traded Chapter 1-1 Trade Materials Parts Finished products Services Resources Knowledge

7. Emerging Markets Concept International Business Chapter 1-1 Places where consumer incomes and buying power are increasing because of an economic expansion. Indonesia Poland Chile Turkey South Africa

8. Homework No more than 2 pages. Please use Arial 12. History of International Business TIMELINE

9. Global Dependency Concept The need of certain products and services rely on the capacity of different countries to be covered. When circumstances oblige the use of imported products or services. International Business Chapter 1 Energy 8 Million Jobs

10. Global Dependency Concept When the country cannot produce enough for its population. When the climate, geography or nature are obstacles to get products or services when needed. International Business Chapter 1 Food

11. Domestic Business Concept Domestic trade or Internal trade is the exchange of goods, services, and capital within a sovereign state's borders or territories. USA has the larges domestic business of the world. At least 189 domestic US companies are GLOBAL International Business Chapter 1

12. International Business Chapter 1 Domestic International 30.000 restaurants, 120 countries, different menus. Insurance company with 14,000 employees.

13. International Business Chapter 1 Think

14. How are you affected by international business?

15. How are you affected by IB? IB Technology Politics History What happens when new technology creates employment What happens when a government change the rules How historical events influence trade among countries We are all part of the IB strategy!

16. The Foundation of International Business International Business Chapter 1-2 Objectives: Describe basic IB activities Explain the components of the IB environment Importance of IB Rules Culture trade Key Words

17. International Business Chapter 1-2 Import & Export Concept PRODUCTS OR SERVICES BROUGHT TO PORT Korea exports to USA USA imports from Korea One can import/export tangible or non tangible goods, services, and even people. An import/export of a good occurs when there is a change of ownership from and International port to a domestic port.

18. International Business Chapter 1-2 Import & Export Concept Balance of Trade + - When the country exports more than imports When the country imports more and exports less

19. Trade Barriers Local rules Labeling requirements Restrictions Taxes, Tariffs & quotas Government relations Culture

20. International Business Chapter 1-2 Trade Barriers Examples Embargo Language *Natpe TV Imported steel (2002)

21. International Business Chapter 1-2 International Business Environment Climate, terrain, seaways, natural resources, agricultural products Language, Education, religion, values and customs, social relationships System, educational level, technology, industries Government, stability, IB policies Economy Political & Legal Factors Cultural & Social Factors Geographic Conditions IB Environment

22. International Business Chapter 1-2 International Business Environment International Business Environment Examples Doesn’t have a seaport Geographic Conditions IB Environment

23. International Business Chapter 1-2 International Business Environment International Business Environment Examples Don’t like to do business with a woman Cultural & Social Factors IB Environment

24. International Business Chapter 1-2 International Business Environment International Business Environment Examples Chavez changes his mind everyday! Political & Legal Factors IB Environment

25. International Business Chapter 1-2 International Business Environment International Business Environment Examples Mali literacy rate is the lowest Economy IB Environment

26. Evert country has their own... Some people expect a present Some companies expect a dinner together Others won´t accept anything ETC

27. International Business Chapter 1-2 The Global Business World International Business Skills Key Words History knowledge Geography Foreign languague Cultural awareness Study a lot

28. International Business Chapter 1-2 The Global Business World The Global Citizen Concept International Business change the life of the people: Different products, more quantity Career choices Cultural exchange...

29. International Business Chapter 1-2 The Global Business World See you on wednesday